SAP Planning for Retail rapid-deployment solution

1. SAP Planning for Retail rapid-deployment solution Solution Details

2. Contents Introduction to SAP Rapid Deployment Solutions Overview of the Solution Solution in Detail • Channel Financial Planning • Merchandise Planning Service Delivery Technical Details

3. Introduction to SAP Rapid Deployment Solutions

4. Today’s reality… “ “ • Statistics state that up to 70% of IT projects run late, over-budget, or do not meet planned goals…Consequently, implementation risk is a critical factor… • From “Introducing Packaged Solutions” by Michael Krigsman • Now when companies think about implementing an application, they really want to implement an integrated solution. • Henry D. Morris, Senior Vice President of Worldwide Software and Services, IDC • Customers today want choices in how they scope, configure, and deploy business software. • Peter M. Russo, Managing Director of Pierre Audoin Consultants

5. You want to… • … ensure the most predictable and fastest time to business value • … deliver the integration the business demands to start and grow without compromises • … choose from a modular ready to use portfolio of solution, deployment and pricing options

6. SAP and a global partner ecosystem offer Rapid Deployment Solutions to meet specific business needs… • Software • Quickly address the most urgent business processes • Content • SAP best practices, templates and tools make solution adoption easier • Enablement • Guides and educational material speed end user adoption • Service • Fixed scope and price provides maximum predictability and lowers risk SAP Rapid Deployment Solutions Rapid Deployment Solutions Software Service Content Enablement

7. … which allow predictability, out-of-the-box integration and adoption choices as business demands • Predictability • Fast value in days/weeks • Fixed cost and fixed best practice scope • Integration • Integrated start and growth options • Immediate and future IT and business processes landscape integrity • Choice • Modular packages to meet specific business needs and allow individual adoption paths • Flexible licensing and deployment options SAP Rapid Deployment Solutions

8. Why have customers chosen SAP Rapid Deployment Solutions? • 8 • Weeksto go-live • 15% • Reduction in project costs • 4 • Week implementation

9. Delivered by SAP or qualified partners • Large Global Partner Ecosystem maximizes availability of and choice within the Rapid Deployment Solutions portfolio • System integrators and value-added resellers provide industry and LoB specific capabilities and expertise • Cloud partners provide the deployment options to match your business needs

10. SAP Rapid Deployment Solutions define a new standard for business solution adoption across the SAP Portfolio Solution Portfolio Industry & LoB Deployment Innovations Business Solutions On demand Mobility Analytics On premise HANA Technology On device

11. SAP Rapid Deployment Solutions support all use cases along your adoption path Predictability Integration Choice From zero to ERP baseline in one goIndustry & geography-ready Start New business and user capabilities – that fit with your existing footprint LoB or industry-specific, mobile, business analytics, collaboration Grow, extend, innovate

12. Get the most out of your business – NOW! • Quickly meeting your most pressing business needs on unprecedented predictability to adopt and manage business solutions • Enabling strategic business adoption paths with out-of-the-box integration for start and grow options as your business demands • Giving choice by providing a modular and well defined portfolio of solution options together with a Global Partner Ecosystem

13. Overview of the solution

14. SAP Planning for Retail • New Content for Channel Financial and Merchandise Planning • Support one end to end planning process that cascades information from financial and merchandise planning that meet department objectives in partnership with finance and merchandise organizations • Real time data to support planning (Forecasts, Inseason data e.g. purchase order, inventory …) • In Season Plan updates: Analyze business trends weekly to identify variances to plan and take action • Simulate forecasted sales across channels, selling location and merchandise hierarchy to evaluate sales, margin and receipt flow impact • Recalculate open to buy based on trend, reduce need for markdowns, reduce out of stock and over stock rates • Retail buying and planning organizations need a integrated solution to define corporate budgets and location to merchandise/open to buy planning, utilizing real-time, what-if demand driven forecasts. • Legacy solutions require batch processing to plan varying levels of budgets by merchandise hierarchy and location. • Executives need to monitor actual to plan performance and adjust accordingly on a weekly basis • Retail organizations need an end-to-end retail planning solution, eliminating large amounts of manual effort, to support Open to Buy processes

15. Business process scope covered Channel Financial Planning - Merchandise Mix Merchandise Planning – OTB Plan, Unit Flow Plan on department level, division, class and subclass Channel Financial Planning – Channel Plan Inventory Manager Director of Finance VP of Planning, Merchandise Manager Store Area Plan Channel Financial Planning – Channel Count / Channel Mix Space Manager CFO Note All Plans are available for Retail, Franchise and Outlet storesas well as for Pre- & In-Season Planning.

16. SAP Planning for Retail Channel Financial and Merchandise Planning Content Helps retailers perform consistent end-to-end planning, from channel financial, location to merchandise by open to buy planning, using real-time demand-driven forecasts, common data, and key performance indicators across the entire process. . 3 4 1 2 Financial Planning – Channel Mix Financial Planning – Channel Plan by Location Merchandise Planning –Open To Buy/ Unit Flow Financial Planning – Merchandise Mix • Top down StorePlan based on Financial Targets • Comparable and new Store Sales Planning • Store openings, closures, moves and renovations • Add new store sales estimates based on like store volume • Plan sales area by store and department • Sales,(regular, promo and markdown) and margin targets by selling location and channel type • Reconcile to Channel Mix targets • Execute financial plan across all available selling channels • Leverage historical sales and margin data • Cross category margin analysis & assessment • Sales, promotion and markdown share, forecast sales and gross margin by selling channel • Top down Merchandise Division and Department Plan based on Financial Targets • Sales, inventory and receipt flow to lowest level of merchandise hierarchy by channel by week and seasonality • Planning open to buy and open to receive/ship budgets • Inventory turn driven planning methods • Reconcile to Financial Inventory Management targets • Top down Merchandise Division and Department Plan based on Financial Targets • Sales and inventory flow by channel by week • Planning sales, receipt and inventory flow to calculate EOP/BOP • Inventory turn driven planning methods • Reconcile to Channel Mix targets In Season Plan Updates • Analyze business trends weekly to identify variances to plan and take action • Simulate forecasted sales across channels, selling location and merchandise hierarchy to evaluate sales, margin and receipt flow impact • Recalculate open to buy based on trend, reduce need for markdowns, reduce out of stock and over stock rates

17. SAP Planning for Retail rapid-deployment solution – System landscape Workbooks for different roles based on SAP Business Objects Analysis for MS Office technology: CFO, Director of Finance, Inventory Manager,Space Manager, VP Planning, Planning Director, Planning Manager, Merchandise Manager ERP system (SAP or non SAP), POS * Queries Filter Reports Planning Functions Key figures Feeded from Master-data Actuals Plan data Info Provider NW 7.30, BI-CONT 7.36** **also available on NW7.31 BI CONT 7.37 SP1 * Data provision from other systems is not part of the RDS scope, Test data will be delivered via flat files

18. Benefits for you • Increase Stock turn • Lower out of stock • Increase sales per square meter • Reduce over stock rates and mark downs • Closed-loop retail business processes based on industry best practices, improve efficiency and accuracy in merchandise decision making • Clear visibility across all performance metrics to support retail performance analysis, re-plans, and sales performance for all channel/stores/sku combinations • Gain the market insight needed to anticipate new trends and with one single merchandise planning and analysis solution convert these insights into actionable plans that create and fulfill shopper demands.

19. Channel Financial Planning

20. SAP Planning for Retail – Financial PlanBusiness process scope covered Store Area Plan Financial Planning – Channel Plan by Location Space Manager Director of Finance / VP or Director of Store Operations Financial Planning – Channel Mix Financial Planning – Merchandise Mix CFO Inventory Manager / VP of Planning / Director of Planning All Plans are available for Retail, Franchise and Outlet storesas well as for Pre- & InSeason Planning. Note

21. Channel Financial Planning: scope and benefits • This process is the starting point for the planning cycle, defining corporate budgets and location per channel utilizing real-time what-if demand driven forecasts that leverage by week, product, customer and store performance indicators Channel Financial Planning • channel sales, receipt and margin plan by month and/or week for multiple fiscal years • Planned by channel, brick & mortar (comp, non-comp, new), franchise, outlet • Preseason and In-season planning • Reconciliation reports Covers different roles and level: • CFO Channel Mix Retail / Outlet / Franchise • CFO Reconciliation • Store Area Plan • Director of Finance Channel Plan Retail / Outlet / Franchise or VP / Director of Store Operations • DoF Reconciliation • Inventory Manager / VP of Planning / Director of Planning Merchandise Mix Retail / Outlet / Franchise • Inventory Manager Reconciliation

22. In the system • Key process flows covered • Channel Count • Role: CFO • Update selling location attributes for next fiscal year • Store openings, closures, moves and renovations • Plan the number of stores for the different channels • Possibility to have different planning versions • Plan on weekly base

23. In the system • Key process flows covered Space Plan • Role: Space Manager • Update selling space per department per selling location • Modifies existing store configurations based on planning decisions to increase or decrease selling space by department • Selects similar store layouts and copies initial selling space allocation by department for the new location • Allows calculation of profitability/sqm

24. In the system • Key process flows covered Channel Mix • Role: CFO • Create financial plan across all available selling channels • Leverage historical and in-season sales and margin data • Plan regular, promo and markdown share, forecast sales and gross margin by selling channel • Release plan as a base for the subsequent processes and for reconciliation

25. In the system • Key process flows covered Channel Plan • Role : Director of Finance or Director of Store Operations • Top down store/department plan based on financial targets • Build sales plans based on corporate financial goals • Comp, non-comp, new store openings • Reconcile to Channel Financial Plan

26. In the system • Key process flows covered Channel Plan • Role : Director of Finance • Comparable and new store sales planning

27. In the system • Key process flows covered Channel Plan • Role : Director of Finance • Plan on store level • Release the store plans for execution

28. In the system • Key process flows covered Merchandise Mix • Role : Inventory Manager, VP/Directors of Planning • Planning on department level • Allocate corporate sales plans to top levels of the merchandise hierarchy • Cross Category Margin Analysis & Assessment • Build sales targets for planners and merchants • Release the merchandise financial plans for execution

29. In the system • Key process flows covered Reconciliation reports • Role: available for CFO and Inventory Manager • Reconcile corporate budget against store and merchandise financial plans • Adjust plans accordingly based on the overall corporate objective

30. Merchandise Planning

31. Merchandise Planning: scope and benefits • Merchandise Planning • Allows recalculation open to buy • Reduced need for markdowns • Analyze business trends weekly to identify variances to plan and take action • Simulate forecasted sales across department/category and channels to evaluate sales, margin and receipt flow impact • Reduce out of stock and over stock rates • Top Down Plan • Created around the organization’s product hierarchy • Sales, receipt, margin and inventory targets from total company by channel to the division, department and on to the defined lowest level of article hierarchy level are planned in detail • Expanded Key Performance Indicators • To include markdowns, Reductions, Inventory adjustments • Above/below adjustments to gross margin • Typically planned at value • In some cases calculating units based on average retail cost metrics Open to buy on • Division, department, class and subclass level

32. SAP Planning for Retail – Merchandise PlanBusiness process scope covered Merchandise Planning – OTB and Unit Flow Plan on Department Level Merchandise Planning – OTB and Unit Flow Plan for one ore more Departments Planning Manager Planning Director Merchandise Planning – OTB and Unit Flow Plan on Class and SubClass Level Merchandise Planning – OTB and Unit Flow Plan overall Divisions Merchandise Manager VP of Planning All Plans are available for Retail, Franchise and Outlet storesas well as for Pre- & InSeason Planning. Note

33. In the system • Key process flows covered • Build detailed open to buy plans by classification and sub-class based on division/department target • Initial Unit Flow estimates based on average unit costs • Manage approved order flow to OTB • Sales, inventory and receipt flow to lowest level of merchandise hierarchy by channel by week and seasonality • Planning open to buy and open to receive/ship budgets • Reconcile to Channel Financial and Location Plans

34. In the system • Key process flows covered • Reconcile Merchandise open to buy plans against merchandise financial targets • Adjust plans accordingly based on overall corporate objectives

35. In the system • Key process flows covered • In season Plan updates • Review plan vs forecast plan versions • Adjust plans accordingly based corporate objectives, anticipated order deliveries, approved markdowns and promotional activity

36. Service Delivery

37. Deploy successfully in as little as 5 weeks 1 2 • Start • Deploy Expectations • Check installation • Implementation in the development system • Load of Master & Transactional Data • Unit Testing • Key user training • Support User-acceptance testing • Hand over solution • Project Closure Presentation • Project organization, Roles and responsibilities • Kick-off workshop participation • Clarify Pre-delivery requirements Results • Mutually-approved scope document • Working SAP system • Successful rollout and adoption • Configuration documentation • Superior support to ensure smooth functioning Note: This slide represents a typical deployment. Exact details may differ according to solution.

38. Pre-defined Services for Rapid Deployment Solutions • Your path to Deploy: fast, efficiently and at predictable cost • Fixed-price Implementation Services • Pre-defined Project Methodology • Ready-to-use Accelerators 1 Start Deploy 2 • Project management • Kick-off workshop participation • Clarify Pre-delivery requirements • Accelerators / Deliverables • Consulting Delivery Guide • Project schedule • WBS • Service Delivery Model, roles and responsibilities • Request for consultants template • Process descriptions • Process-flow-documents • Kick-off presentation • Consumption Guide • Pre-delivery requirements and checklist • Check Installation and pre-requisites • Implement solution in one customer system • Master and transactional Data Load • Unit Tests • Knowledge Transfer to Key Users • Support End User Test • Sign off of solution • Accelerators / Deliverables • Installation guide • Solution Documentation • Solution Manager content • Best-Practices content(pre-configuration) • Configuration activities • Consulting Delivery Guide • Implementation Content • Test cases • Deliverable acceptance forms • Training Materials – Process-flow recordings etc. Note: This slide represents a typical deployment. Exact details may differ according to solution.

39. Implementation methodology 1 2 Start Deploy Kickoff Workshop Configuration Guide Project Schedule Scoping Questionnaire Check Lists Support Portal Note: This slide represents a typical deployment. Exact details may differ according to solution.

40. Project plan and timelines 1 2 Start Deploy • Prepare Project • Kick off workshop • Select Options • Check Installation • Activate Solution • Confirm Solution • Acceptance Testing • Set up master and transactional Data • Train Key Users • Project Sign-off &Support SAP involvement Customer involvement Note: This slide represents a typical deployment. Exact details may differ according to solution.

41. Deploy successfully in as little as 5 weeks • Prepare Project • Define Project Organization, Roles, and Responsibilities • Assignment of Roles and Responsibilities • Team Onboarding • Schedule for Project Planning • Project Performance Report Template • Change Request Log Template • Issues Log Update Template • Communication Matrix • Clarify Pre-delivery Requirement • Checklist Topics with Customer before Project Start A special step-by-step guide describes each activity during the deployment

42. Deploy successfully in as little as 5 weeks • Deploy Solution • Check Installation and agreed pre-requisites done by the customer • Implement solution in the Development system • Content Activation • Implementation of Planning for Retail objects • Planning Queries, Functions • Implementation of Workbooks • Load of Master & Transactional Data • Unit Testing • Key User Training • Support Test • Hand Over Solution • Project Closure Presentation • Sign-off service A special step-by-step guide describes each activity during the deployment

43. Key deliverables • Installation of one environment (SAP Netweaver BW 7.3 or higher / SBO Analysis 1.2 or higher) • Providing Master and Transactional Data based on System requirements • Data extraction into BW environment needs to be provided • Transport of initial installation of Rapid-Deployment Solution to all relevant customer system environments • Technical and commercial project management • Risk Management • Organization of project meetings • Controlling of the overall project • Controlling of project progress and results (including project reporting) • Installation of the Rapid Deployment Solution • Sample master and transactional data

44. Project team: SAP • SAP Consultants • Responsible for implementation of the agreed upon scope for the rapid-deployment solution • Delivery of Kick-off workshop • Checking the pre-requisites • Setting up the solution in one customer system • Supporting the test • Delivery of the key user training

45. Project team: customer • Leading Project Manager • Serves as a central contact person, from project initiation to going live and support • On your side: responsible for functional and commercial project management, coordination, overall project controlling, preparation of steering committees, and so on • Basis staff • Especially responsible for the installation and administration of the development and productive system landscapes • Functional department staff / key user • Contact for consultants • Responsible for workshops, questions from SAP, end-user training, and possibly as a power user for simple configurations • Specialized Staff (Optional) • Responsible for further specialized areas such as customization and configuration

46. Technical Details

47. System requirements • Technical requirements: • SAP Netweaver ABAP 7.30 SP03 with Bi Content Add-on 7.36 SP02 or higher • Microsoft Office Excel 2010 or 2007 • Microsoft .NET Framework 2.0 Redistributable Package • SAP BusinessObjects Analysis for MS Office Edition version 1.2 or higher • SAP Solution Manager 7.1 SP06 • Requirements for HANA: • SAP Netweaver ABAP 7.30, minimal SP05 with Bi Content Add-on 7.36 SP02 or higher • HANA 1.0 SP 3 or higher

48. SAP Planning for Retail rapid-deployment solution – System landscape Workbooks for different roles based on SAP Business Objects Analysis for MS Office technology: CFO, Director of Finance, Inventory Manager,Space Manager, VP Planning, Planning Director, Planning Manager, Merchandise Manager ERP system (SAP or non SAP), POS * Queries Filter Reports Planning Functions Key figures Feeded from Master-data Actuals Plan data Info Provider NW 7.30, BI-CONT 7.36** **also available on NW7.31 BI CONT 7.37 SP1 * Data provision from other systems is not part of the RDS scope, Test data will be delivered via flat files

49. SAP Rapid-Deployment solutionsThe fastest way to run your business better • <Solution/Link to demo>